Learning How to Get Your Credit Score

If you are wondering how to get your credit score, then you are not alone. There are literally millions of Americans that have at some time in their life been turned down for credit, or even worse, received a threatening call from a collection agent.

When you learn how to get your credit score, you can avoid these unfortunate events from happening. This can be done by learning as much about the score as possible before applying for anything. Then, you can decide if you want to use your credit rating for purchasing anything or only when it comes to credit cards and loans.

The next step in knowing how to get your credit score is to learn about the three major credit bureaus. These bureaus have their own credit report that is used to determine your credit score. The three major reporting bureaus are Experian, Equifax, and TransUnion.

Each of the three credit bureaus has a slightly different method for calculating the credit score. The three bureaus have very similar formulas to calculate your score but the formula is almost completely different from each bureaus. Knowing what is your credit score is vital to getting approved for credit.

Once you understand what is on in your credit report and what each report is based upon you can then find out what is your FICO credit score. The FICO credit score is determined using three factors; payment history, credit limit, and the debt ratio.

The payment history is determined by checking your credit card and bank statements and your current balance in order to calculate your payment history. The debt ratio is determined by taking all your current debts and dividing them by the amount of available credit on the card and paying off every card in order to calculate your debt ratio. Once you have these figures, you can determine how your debt ratio affects your FICO credit score.

Now that you get your credit score, you can begin to build your credit. You should also begin to pay off all your debt and begin paying down your current debt. This will increase your credit score and will also help you avoid getting a nasty phone call from a collection agent or being turned down for a loan or credit card.

Learning how to get your credit score is essential to building credit. It is easier to apply for credit when you know your credit score.

In addition to knowing your credit scores you need to know what type of loans you need. There are some loans that have a higher interest rate than others. If you know what type of loan you need then you will be able to shop around and get a loan with a lower interest rate.

It is also important to know how your credit score will change if you choose to take out a new loan. If you are already behind on your payments then you will likely have a lower credit score. Also if you take out a loan that requires a larger monthly payment, your credit score will go up.

Learning how to get your credit score and understanding the three credit bureaus is not a difficult process. Once you are armed with this information it is easy to understand the credit scoring system and how to obtain a better score.

When you have your credit report and know your credit score, it will be much easier to get a loan. The more you know the easier it will be to make any financial decision.


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